$97,762 to be Paid in Back Wages by Sportswear Company for Overtime and Record-keeping Violations

Monday, February 4, 2013

It’s Greek to Me Inc., which operates as GTM Sportswear in Manhattan, has agreed to pay 133 workers a total of $97,762 in back wages following an investigation by the U.S. Department of Labor’s Wage and Hour Division. The investigation found violations of the Fair Labor Standards Act’s overtime and record-keeping provisions when inside sales representatives were found to be improperly classified as exempt from overtime requirements.

The investigation determined that GTM Sportswear failed to pay employees overtime compensation at time and one-half their regular rates of pay for hours worked beyond 40 in a week. Instead, employees were paid fixed salaries each week, without regard to the number of hours worked. Record-keeping violations were also cited during the investigation when the employer failed to keep time records for the employees improperly classified as exempt.

The violations affected employees from GTM Sportswear’s headquarters facility in Manhattan. GTM Sportswear customizes apparel with screen printing, embroidery and other personalization that is sold nationwide.

The FLSA provides an exemption from both minimum wage and overtime pay requirements for individuals employed in bona fide executive, administrative, professional and outside sales positions, as well as certain computer employees. To qualify for exemption, employees generally must meet certain tests regarding their job duties and be paid on a salary basis at not less than $455 per week. Job titles do not determine exempt status. For an exemption to apply, an employee’s specific job duties and salary must meet all the requirements of the department’s regulations.

The FLSA requires that covered, nonexempt employees be paid at least the federal minimum wage of $7.25 per hour for all hours worked, plus time and one-half their regular rates, including commissions, bonuses and incentive pay, for hours worked beyond 40 per week. Employers also are required to maintain accurate time and payroll records.